Registering a business name

14 years ago

You can usually get by for a while on your own, but if you're serious, and if you're in the U.S., you'll want to register your business in the jurisdiction where you live (city or county). Usually it is a matter of completing paperwork relating to the type of business you are registering so they can bill you and tax you. In my jurisdiction, marketing businesses cost $35 a year to register and you don't have to deal with taxation because you are providing services and not selling things that are taxed. Basically, it's a paperwork deal and a little bit of money up front. It will help you keep from mingling your personal money with business money, which the IRS does not like. it will also alleviate some of the headaches and problems of not having a business license. It helps you look more professional and it puts businesses at ease when writing a check to Big Time Marketing Business vs. Joe Blow.

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Morris Trahan

14 years ago

Killercopy brought out some good points, Depends on what jurisdiction you are in.
I would also register with the IRS and get a TIN #. If you are still working fulltime
and just starting out in Marketing, i would not worry about it at this time, i think i
would wait to see how my business goes. Once your business grows then you most
likely will want to keep your income seperate from your personal income for tax purposes.

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Silas Hart 14 years ago

I'm actually surprised this topic doesn't come up much.

Apply for an EIN online.

Apply for an Employer Identification Number (EIN) Online

EIN, Employer Identification Number. A TIN (Tax Identification Number) isn't it own little thing, a TIN is a Social Security Number or an Employer Identification Number. People also assume that an EIN is only good if you plan on having employees, which isn't true. The EIN is a number the IRS provides for your business use. It allows you to separate your personal finances from your business information. If you are making a living selling affiliate products through Article Marketing. The whole "point" is the ability to provide other businesses and financial institutions with a legal identification number that IS NOT your social security number.

However, I believe your topic was on actually doing business through a business name.

You will have to apply for a DBA (Doing Business As) locally. This will allow you to use your business name as it's own entity, such as making a bank account for "FaJeeb Media." Once you have a DBA, you will have to acquire the proper permits and licenses. I had to get a Sellers Permit for example, as I was creating and selling/reselling products out of my home. I eventually formed my online business as a LLC for tax and money purposes.
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- krull 14 years ago
  
  Thanks, very informative replies
  
  I'll be setting up a business account with my local bank as well. I'll look into applying for this TIN. Also, hear me out on this one...
  
  I'm going to be self employed, no employees, so not really a 'business'. BUT! One thing I would like to do is establish the name itself. I guess that's kind of a different, a trademark, correct? I'm not sure about the legalities of having an address that says 'business name, address', and having online accounts like with Paypal and Clickbank etc with your business name as the contact, or how any of that works, but I'd like to set that up . I guess I like to keep my name private as much as I can and to also just look a bit more professional.
  
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  krull 14 years ago
  
  I already filled out the EIN thing and I chose to register as an LLC for extra protection. Now, I'm not sure if I should register the actual LLC company name in my state or not using the Articles of Orginization form that you get from your state's website. The thing is that this is all on the net so I don't really have to, but... yeah.
  
  I'm thinking that if I do register using the Articles of Orginization form, then I'd have to start charging tax for people who live in the same state. I'm thinking I can just get by without actually registering it, but I wanted to ask what you think I should do and what the benefits of getting the name official by doing so are.
  
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seasoned

14 years ago

Krull,

In the ***US*** HERE is how it often works....

IF you do NOT have an LLC or corporation, and will NOT be using your legal name for the company, you may have to file a DBA. That is usually a $10+ fee to the county clerk and an approved notice published, which ads to the cost.

IF you have an LLC or corporation, you have to have articles of incorporation filed. That can be cheap, or very expensive.

IF you have employees, an LLC, or a corporation, or want to keep things separate, get an EIN from the IRS.

IF you are in an area that requires it, you may need to get a business license. In the case of a corporation or LLC, it is technically ANOTHER person and **IT** will file the taxes, so IT needs the business license.

IF you are to collect sales tax, you may need a special permit, often called a sales/use tax permit.

LLCs and corporations are statewide, and might count as trademarks to a degree. But a trademark can't hurt.

DBAs are county wide.

Steve

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krull

14 years ago

Thanks. I'm going to register the LLC officially using the Articles of Orginization form. Going to cost me $75 but what the heck.

I believe I'll also register my business as a country-wide trademark, because it's a GOOD one and I don't want someone taking it before I get to it. That's gonna run me $275, but hey, better safe than sorry.

Alright, have my EIN number, just need to get this Articles form off and register the trademark and I think I'm set.

Thanks
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joshril

14 years ago

Originally Posted by krull

Thanks. I'm going to register the LLC officially using the Articles of Orginization form. Going to cost me $75 but what the heck.

I believe I'll also register my business as a country-wide trademark, because it's a GOOD one and I don't want someone taking it before I get to it. That's gonna run me $275, but hey, better safe than sorry.

Alright, have my EIN number, just need to get this Articles form off and register the trademark and I think I'm set.

You really should consider talking with a competent CPA or tax attorney before filing for an LLC (if you have not done so already). Depending on your situation and what you're doing, you might be better starting as a sole prop.

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infotaxsquare

Banned 14 years ago

[DELETED]

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joshril

14 years ago

Originally Posted by infotaxsquare

Choose the name of your entity carefully. It is very important that your name portray the image you want for your new company. Legally, the name you select must not be "deceptively similar" to any existing company or must be "distinguishable on the record" of your state.

Good point. Another thing to note... if you end up structuring as a LLC, you can always file for an assumed name (DBA) under the LLC if you'd like to do business in a name other than your LLC name.

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badboy_Nick

14 years ago

Originally Posted by krull

I'm going full time into marketing and I wanted to know if I had to register a business name, and all of that jazz? Not sure why, how, and where to go about this.

You can do it in your own name first as a sole trader. Once you make more money you might want to look at incorporating in Nevada or Delaware for tax benefits, but I'd talk to a lawyer first.

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Paul Buckley

14 years ago

Originally Posted by badboy_Nick

You can do it in your own name first as a sole trader. Once you make more money you might want to look at incorporating in Nevada or Delaware for tax benefits, but I'd talk to a lawyer first.

DISCLAIMER: I am not a lawyer or accountant. Business formation decisions should be made with the advice of competent legal and financial advisors.

I live in the US so I know nothing of business formation practices elsewhere.

I have used all three of the basic business forms: sole proprietorship, LLC and Corporation.

Internet marketing as a sole proprietor using your own name will rarely require any type of registration or permitting. Local regulations may vary.

An LLC is the next up the list in terms of complexity. It costs about the same to register an LLC as to incorporate and the protections are very similar. An LLC will typically require much less formal reporting and recurring paperwork.

Incorporation is a very formal affair and a rigid structure. You'd better be prepared to keep up with all the reporting requirements. You'll also need to decide whether to be a C corporation or a Subchapter S corporation. Hint: If you are subject to a state income tax, you may want to be an S corporation. Otherwise a C corp will suffice.

Many will tell you to register your LLC or Incorporate in Delaware or Wyoming etc. There are some good reasons to do this, when appropriate, and some reasons not to in other cases. If you are doing all of your business on the web across borders, then a Delaware or Wyoming registration might be a good idea. If you are a consultant, doing business locally, then you might be better off registering in your own state.

For instance; I am an online marketing consultant doing business locally in central Texas. If I were to register an LLC or Corporation in Delaware I would STILL have to register in Texas as a "foreign corporation" and pay the same franchise fee etc. as if I'd registered in Texas to begin with. Better to save the cost of initially registering in Delaware.

When your business gets big enough, you might want to have TWO LLC's or Corporations or one of each. One of my LLC's owns all the assets (domain names, copyrights, trademarks etc. as well as physical assets) of my business and leases them to my operating LLC. My operating LLC is my 'public' face and the entity that would end up in court should one of my clients turn out to be litigious. But it owns nothing so can lose nothing. This is called "double-incorporation" among other things and is common practice. The bank where you keep your money is likely the 'operating' business of a separate bank holding company.

I hope I've cleared things up a little.

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kindsvater

14 years ago

Before jumping into a LLC you must check the tax laws of your particular state; maybe have a quick chat with a CPA. If you hit it big with your business the yearly franchise taxes could be a killer.

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Paul Buckley

14 years ago

Originally Posted by kindsvater

Before jumping into a LLC you must check the tax laws of your particular state; maybe have a quick chat with a CPA. If you hit it big with your business the yearly franchise taxes could be a killer.

Well, if I'd know YOU were going to show up, I could have saved myself a lot of typing and let you explain it all much better than I can

Ladies and gentlemen, I defer to our resident legal expert. Pay no attention to the Dumb Irish Kid

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Tiffany Holbrook

14 years ago

Talk to a cpa before you do anything.

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freudianslip27

14 years ago

If you are going to be approaching local businesses, you will want to appear as professional as possible. When I first started, some of the more experienced business owners I met with definitely "checked me out". It helped that I was in the chamber of commerce, and also that they wrote the check out to my actual business name.

I think its always a fear with this "internet stuff" that they will deal with someone who is a scammer or just half trying this. It stinks and isn't fair to new people starting out (and often having a wealth of knowledge and value to bring to the business) but it is the reality!

I definitely recommend registering a business name!

Matt

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Registering a business name

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